Whitefriargate makeover was not ‘value for money’
REASONS FOR GOVERNMENT FUNDING SNUB EXPLAINED BY SENIOR MINISTER
HULL’S failed £22m bid to transform Whitefriargate was rejected because it did not represent value for money, according to a senior minister.
The bid by Hull City Council was aimed at securing government funding to help meet the cost of installing new heritage-style shopfronts along the city centre street.
New outdoor seating terraces and the removal of ugly solid external security shutters were also planned in an attempt to mirror recent regeneration schemes in the nearby Trinity Market and Humber Street.
However, it was not included in list of 72 successful high street initiatives across England announced on Boxing Day.
They are set to share a £831m investment and include town centre regeneration projects in Grimsby and Scunthorpe.
In a letter to Hull City Council leader Steve Brady and Hull West and Hessle MP Emma Hardy, local government secretary Robert Jenrick said the Whitefriargate bid had failed to meet the Treasury’s “stringent test” on whether it would ultimately deliver value for money to the public purse.
He said benefit cost ratio (BCR) rules for the Future High Streets Fund required proposed schemes to show a minimum benefit of 2:1 times the cost.
Mr said: “While your business case met the gateway criteria, our assessment concluded that it unfortunately did not meet the stringent test for overall value for money required by the Treasury as a condition for the fund.
“As set out in the assessment criteria, a minimum central BCR of 2:1 was required. Regrettably, you submitted a business case with a BCR that didn’t meet the minimum threshold.
“The department is therefore, unfortunately, unable to award any funding on this occasion.
“I know this news will be disappointing and I have asked my officials to get in touch with yours following this letter, to provide detailed feedback.”
Mr Jenrick suggested the government’s new £4bn Levelling Up Fund announced in the recent spending review could provide scope for a fresh funding bid for Whitefriargate.
He added: “The detail of this is being worked through and made public in due course.
“There will be future opportunities through this fund to bid for investment and, therefore, you may well be able to make use of the work done already.”
The funding blow has forced city councillors to rethink facelift plans for Whitefriargate, which has one of the highest rates of empty shop units in the city centre.
They still have a pot worth £2.7m earmarked for the street from recent grant awards by Historic England and the Humber Local Enterprise Partnership.
Last week, deputy council leader Daren Hale admitted the timescale for carrying out refurbishment work to properties along the street would now inevitably slip as a result of the funding decision. will be